Cloudflare’s Disruption – Stratechery by Ben Thompson

Ben Thompson sharing some brilliant observations on the strategy that Cloudflare is pursuing in the cloud market. Tons of Clay Christensen references here from both Thompson and Matthew Prince of Cloudflare.

In other words, I would be Cloudflare: I would charge marginal rates for my actual marginal costs (storage, and some as-yet-undetermined-but-promised-to-be-lower-than-S3 rate for operations), and give away my zero marginal cost product for free. S3’s margin is R2’s opportunity.

I've got a lot of respect for Cloudflare. They have built incredible, foundation layer technology that is making the web better every day. Honestly I've always considered them to play at the network layer up, as an accelerator and optimizer. As a potential full-cloud provider, I would watch them closely.

This will be very interesting to watch over the coming years. 🍿